University of North Florida
Board of Trustees
Finance and Audit Committee

Committee Members Present

Committee Members Absent

Ms. Wanyonyi Kendrick

Other Committee Members Present

Mrs. Joan Newton, Dr. Bruce Taylor

Item 1 Call to Order

Committee Chair Twomey called the meeting to order and informed the committee that the UNF Financing Corporation (UNFFC) met prior to this meeting and approved bonding for the Student Union Building but took no action regarding the bonding for student housing – there were a few more steps to go through before approval would be requested for student housing.

Committee Chair Twomey stated that the purpose of this conference call was to review the approval from the UNFFC and make a recommendation to the Board of Trustees.

Item 2 Approval of the Minutes

Committee Chair Twomey asked for approval of the minutes for the March 15, 2007 meeting. The minutes were approved unanimously.

Item 3 Approval of Bonding for the Student Union Building

Committee Chair Twomey asked Vice President Shuman to speak about this item.

Vice President Shuman stated that the University was asking for a resolution of approval, from this committee to the Board of Trustees, for the issuance of debt for approximately $20 million to partially finance the Student Union building – a project estimated to be between $48 and $51 million. She stated that this proposal met the debt management guidelines recently approved by the Board of Trustees.

Vice President Shuman discussed debt issuance and service, stating that the debt would be secured by a lien against the Activity and Service Fee revenues and would mature within 30 years after issuance. The debt would be sold through a negotiated sale with an underwriting firm that was selected in a competitive process in 2006. She stated that the meeting materials included a Sources and Uses Statement, along with a pro forma showing projections.

Vice President Shuman provided an overview of the new Student Union building, stating that the building would contain a business side and a recreational side, including approximately 148,000 square feet, with offices for student organizations, a student lounge area, a food court, conference and meeting rooms, a restaurant, retail spaces, a bookstore and other support facilities.

Committee Chair Twomey offered opportunity for discussion. Chair Taylor asked if there was an option to retire the debt before the 30-year period. Vice President Shuman stated that there would be provisions for this option within the bond issue, and language could also be added for a defeasance to add money to escrow for pay down if this was in the best interest of the University.

Committee Chair Twomey stated that it was important to recognize that the University was only borrowing 40 percent of the cost of the building, which was a very modest use of outside funding.

Vice President Shuman stated that additional costs above debt service would be used to cover the costs of maintenance, and to fund building improvements and renovations.

Committee Chair Twomey asked for a resolution of approval, from this committee to the Board of Trustees, for the issuance of debt for the Student Union building. The resolution was approved unanimously.

Item 4 Update on Bonding for Student Housing

Committee Chair Twomey asked Vice President Shuman to speak about this item.

Vice President Shuman stated that because the debt management guidelines had not been met for student housing, meetings with the BOG were continuing. She planned to provide further information at the upcoming Board of Trustees Meeting.

Item 5 Adjournment

Committee Chair Twomey asked for further discussion – upon receiving none, he adjourned the meeting.